First Community Bankshares Q3 profit rises 25.7%
Nine-month net income reached a record, and FCBC declared a $0.33 quarterly cash dividend payable on or about November 27, 2026.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
First Community Bankshares, Inc. (FCBC) reported third-quarter 2026 net income of $15.42 million, or $0.81 per diluted share, up $3.16 million (25.74%) from $12.27 million a year earlier. Net income for the first nine months reached a record $49.96 million; the prior nine-month record was $40.61 million in 2021. The company declared a $0.33 quarterly cash dividend, payable on or about November 27, 2026, to shareholders of record November 13, 2026.
Net interest margin was 4.46%, compared with 4.43% a year earlier, and tax-equivalent net interest income increased $4.62 million (14.72%). Net interest income after provision for loan losses rose $3.89 million (12.42%), primarily reflecting average-earning-asset growth associated with the Hometown Bancshares acquisition completed in the first quarter of 2026. Consolidated assets were $3.63 billion as of September 30, 2026. Nonperforming assets declined $1.03 million (6.09%) year over year; annualized net charge-offs were 0.11% of average loans, compared with 0.24% a year earlier.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter net income rose 25.74% year over year.
Negative
- None.
Filing Explained
Adjusted nine-month earnings were below reported net income, in part because the reconciliation removes a divestiture gain.
FCBC reports that it repurchased 504,652 common shares in the first quarter of
For the nine months ended
The release describes adjusted earnings as a non-GAAP measure that is supplemental and not a substitute for GAAP results.
8-K Event Classification
Key Figures
Key Terms
Net interest margin financial
Fully taxable equivalent (FTE) financial
Allowance for credit losses financial
Nonperforming assets financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were FCBC's third-quarter 2026 earnings?
What dividend did FCBC declare?
What was FCBC's adjusted net income in the third quarter of 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
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UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM
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CURRENT REPORT
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Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
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(State or other jurisdiction
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of incorporation)
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Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code: (
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Securities registered pursuant to Section 12(b) of the Act:
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| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). | ||||
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Emerging growth company
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02
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Results of Operations and Financial Condition.
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Item 8.01
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Other Events.
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Item 9.01
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Financial Statements and Exhibits.
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(d)
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The following exhibit is included with this report:
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Exhibit No.
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Exhibit Description
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99.1
104
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Earnings release dated October 27, 2026.
Cover Page Interactive Data File (formatted as Inline XBRL).
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FIRST COMMUNITY BANKSHARES, INC.
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Date:
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October 27, 2026 |
By:
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/s/ David D. Brown
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David D. Brown
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Chief Financial Officer
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Exhibit 99.1
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NEWS RELEASE |
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FOR IMMEDIATE RELEASE: |
FOR MORE INFORMATION, CONTACT: |
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| October 27, 2026 |
David D. Brown |
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(276) 326-9000 |
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First Community Bankshares, Inc. Announces Record Third Quarter 2026 Results and Quarterly Cash Dividend
Bluefield, Virginia – First Community Bankshares, Inc. (NASDAQ: FCBC) (www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter ended September 30, 2026. The Company reported a quarterly net income of $15.42 million, or $0.81 per diluted common share, for the quarter ended September 30, 2026. Net income for the nine months ended September 30, 2026, reached a record $49.96 million, with diluted earnings per common share of $2.63.
The Company also declared a quarterly cash dividend to common shareholders of thirty-three cents, $0.33, per common share. The quarterly dividend is payable to common shareholders of record on November 13, 2026, and is expected to be paid on November 27, 2026. This year marks the 41st consecutive year of regular dividends to common shareholders.
Third Quarter 2026 Highlights
Income Statement
| o |
Net income for the third quarter of 2026 increased $3.16 million, or 25.74%, to $15.42 million, compared with $12.27 million for the third quarter of 2025. For the first nine months of 2026, net income reached a record $49.96 million, surpassing the previous nine-month record of $40.61 million reported in 2021 and increasing $13.63 million compared with the first nine months of 2025. |
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| o |
Excluding merger-related and other non-recurring items, adjusted net income for the third quarter of 2026 was $14.74 million, an increase of $1.84 million, or 14.23%, from the same period in 2025. For the first nine months of 2026, adjusted net income totaled $42.79 million, an increase of $5.82 million, or 15.76%, compared to the same time period of 2025. Significant non-recurring pre-tax items during 2026 included a $10.38 million gain on the sale of the Company's stake in Bearing Insurance and merger-related costs of $2.31 million. |
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| o | Net interest margin increased 3 basis points to 4.46% for the third quarter of 2026, compared with 4.43% for the third quarter of 2025. Net interest rate spread increased 10 basis points to 4.16%, contributing to a $4.62 million, or 14.72%, increase in tax-equivalent net interest income. The improvement was primarily driven by an increase in average earning assets and lower funding costs. Average earning assets increased $390.91 million, or 13.89%, contributing $4.56 million in additional interest income, while the cost of interest-bearing deposits declined 15 basis points. | |
| o | Net interest income after provision for loan losses increased $3.89 million, or 12.42%, compared with September 30, 2025. The increase was primarily attributable to growth in average earning assets associated with the acquisition of Hometown Bancshares, completed in the first quarter of 2026. | |
| o | Noninterest income increased $1.76 million, or 16.14%, compared to the same quarter of 2025, primarily reflecting a combined $1.61 million increase in other operating income and other service charges and fees. Noninterest expense increased $1.66 million, or 6.32%, over the same period, primarily due to increases in salaries and benefits of $955 thousand, or 6.66%, other operating expense of $471 thousand, or 13.95%, and amortization of intangibles of $401 thousand, or 92.61%. | |
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o |
Annualized return on average assets ("ROA") increased to 1.69% for the third quarter of 2026, compared with 1.53% for the same quarter of 2025. Annualized return on average common equity ("ROE") increased to 11.23%, compared with 9.58% for the same period of 2025. |
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| o | When adjusted for merger and non-recurring expenses, ROA was 1.62% for the third quarter of 2026 and ROE was 10.73%. Return on average tangible common equity was 15.32%. |
Balance Sheet and Asset Quality
| o | Consolidated assets totaled $3.63 billion at September 30, 2026. | |
| o |
The Company's loan portfolio increased $162.66 million, or 7.03% from year-end 2025. Excluding the Hometown acquisition, the loan portfolio decreased approximately $8.38 million, or 0.36%. However, loan production for the third quarter of 2026 was $125.59 million, compared to $88.84 million for the same quarter in 2025, a 41.37% increase. |
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| o | The allowance for credit losses increased $1.88 million in the third quarter of 2026 compared to December 31, 2025, primarily driven by the impact of the Hometown transaction. The allowance for credit losses to total loans was 1.32% on September 30, 2026, compared to 1.33% on December 31, 2025, and 1.36% on September 30, 2025. | |
| o |
The Company did not repurchase any common shares in the third quarter of 2026 or 2025. However, 504,652 common shares at a total cost of $20.33 million were repurchased during the first quarter of 2026. |
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| o | Total non-performing assets declined $1.03 million, or 6.09%, compared to the same period of 2025, reflecting continued improvement in asset quality and the second consecutive quarterly decline. | |
| o |
Non-performing loans as a percentage of total loans improved to 0.64% on September 30, 2026, from 0.71% at September 30, 2025, a decrease of 7 basis points. Net charge-offs for the third quarter of 2026 totaled $696 thousand, or 0.11%, of annualized average loans, compared to $1.42 million, or 0.24%, of annualized average loans for the same period in 2025. The year-over-year improvement was primarily attributable to $2.01 million of significant charge-offs recorded during the third quarter of 2025. |
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Book value per share on September 30, 2026, was $ 28.83, an increase of $1.53, or 5.60%, from year-end 2025. |
Non-GAAP Financial Measures
In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to that comparable GAAP financial measure can be found in the attached tables to this press release. While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.
About First Community Bankshares, Inc.
First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 61 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of September 30, 2026. First Community Bank offers wealth management and investment advice and services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered $1.82 billion in combined assets as of September 30, 2026. The Company reported consolidated assets of $3.63 billion as of September 30, 2026. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.com.
This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; changes in banking laws and regulations; the degree of competition by traditional and non-traditional competitors; the impact of natural disasters, extreme weather events, military conflict , terrorism or other geopolitical events; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
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Three Months Ended |
Nine Months Ended |
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September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
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(Amounts in thousands, except share and per share data) |
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
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Interest income |
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Interest and fees on loans |
$ | 33,125 | $ | 32,638 | $ | 31,722 | $ | 31,232 | $ | 30,805 | $ | 97,485 | $ | 92,111 | |||||||||||||||
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Interest on securities |
2,167 | 2,106 | 2,198 | 1,221 | 1,050 | 6,471 | 3,317 | ||||||||||||||||||||||
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Interest on deposits in banks |
4,913 | 4,865 | 3,861 | 3,826 | 3,844 | 13,639 | 10,828 | ||||||||||||||||||||||
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Total interest income |
40,205 | 39,609 | 37,781 | 36,279 | 35,699 | 117,595 | 106,256 | ||||||||||||||||||||||
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Interest expense |
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Interest on deposits |
4,340 | 4,734 | 4,487 | 3,918 | 4,402 | 13,561 | 14,004 | ||||||||||||||||||||||
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Total interest expense |
4,340 | 4,734 | 4,487 | 3,918 | 4,402 | 13,561 | 14,004 | ||||||||||||||||||||||
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Net interest income |
35,865 | 34,875 | 33,294 | 32,361 | 31,297 | 104,034 | 92,252 | ||||||||||||||||||||||
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Provision for credit losses |
680 | 483 | 378 | 36 | - | 1,541 | 36 | ||||||||||||||||||||||
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Net interest income after provision |
35,185 | 34,392 | 32,916 | 32,325 | 31,297 | 102,493 | 92,216 | ||||||||||||||||||||||
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Noninterest income |
12,647 | 22,341 | 11,457 | 11,429 | 10,889 | 46,445 | 31,458 | ||||||||||||||||||||||
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Noninterest expense |
27,940 | 27,565 | 28,737 | 27,624 | 26,279 | 84,242 | 76,679 | ||||||||||||||||||||||
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Income before income taxes |
19,892 | 29,168 | 15,636 | 16,130 | 15,907 | 64,696 | 46,995 | ||||||||||||||||||||||
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Income tax expense |
4,469 | 6,655 | 3,609 | 3,665 | 3,641 | 14,733 | 10,666 | ||||||||||||||||||||||
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Net income |
$ | 15,423 | $ | 22,513 | $ | 12,027 | $ | 12,465 | $ | 12,266 | $ | 49,963 | $ | 36,329 | |||||||||||||||
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Earnings per common share |
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Basic |
$ | 0.82 | $ | 1.19 | $ | 0.64 | $ | 0.68 | $ | 0.67 | $ | 2.64 | $ | 1.98 | |||||||||||||||
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Diluted |
$ | 0.81 | $ | 1.19 | $ | 0.63 | $ | 0.68 | $ | 0.67 | $ | 2.63 | $ | 1.97 | |||||||||||||||
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Cash dividends per common share |
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Regular |
0.33 | 0.31 | 0.31 | 0.31 | 0.31 | 0.95 | 0.93 | ||||||||||||||||||||||
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Special cash dividend |
- | - | - | 1.00 | - | - | 2.07 | ||||||||||||||||||||||
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Weighted average shares outstanding |
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Basic |
18,910,756 | 18,879,907 | 18,925,478 | 18,315,268 | 18,314,865 | 18,905,327 | 18,311,661 | ||||||||||||||||||||||
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Diluted |
18,993,264 | 18,979,314 | 19,032,945 | 18,390,550 | 18,400,289 | 18,986,593 | 18,417,066 | ||||||||||||||||||||||
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Performance ratios |
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Return on average assets |
1.69 | % | 2.49 | % | 1.39 | % | 1.53 | % | 1.53 | % | 1.86 | % | 1.52 | % | |||||||||||||||
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Return on average common equity |
11.23 | % | 16.90 | % | 9.29 | % | 9.63 | % | 9.58 | % | 12.49 | % | 9.64 | % | |||||||||||||||
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Return on average tangible common equity(1) |
16.03 | % | 24.39 | % | 13.46 | % | 13.80 | % | 13.82 | % | 17.98 | % | 13.97 | % | |||||||||||||||
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(1) |
A non-GAAP financial measure defined as net income divided by average stockholders' equity less average goodwill and other intangible assets. |
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CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE (Unaudited) |
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Three Months Ended |
Nine Months Ended |
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September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
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(Amounts in thousands) |
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
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Noninterest income |
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Wealth management |
$ | 1,324 | $ | 1,399 | $ | 1,299 | $ | 1,181 | $ | 1,371 | $ | 4,022 | $ | 3,755 | ||||||||||||||
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Service charges on deposits |
4,719 | 4,431 | 4,185 | 4,292 | 4,520 | 13,335 | 12,476 | |||||||||||||||||||||
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Other service charges and fees |
4,412 | 4,473 | 3,943 | 4,046 | 3,847 | 12,828 | 10,978 | |||||||||||||||||||||
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(Loss) gain on sale of securities |
- | 210 | (2 | ) | - | - | 208 | - | ||||||||||||||||||||
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Other operating income(1) |
2,192 | 11,828 | 2,032 | 1,911 | 1,151 | 16,052 | 4,249 | |||||||||||||||||||||
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Total noninterest income |
$ | 12,647 | $ | 22,341 | $ | 11,457 | $ | 11,429 | $ | 10,889 | $ | 46,445 | $ | 31,458 | ||||||||||||||
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Noninterest expense |
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Salaries and employee benefits |
$ | 15,306 | $ | 15,127 | $ | 14,367 | $ | 14,398 | $ | 14,351 | $ | 44,800 | $ | 42,035 | ||||||||||||||
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Occupancy expense |
1,431 | 1,529 | 1,666 | 1,306 | 1,508 | 4,626 | 4,374 | |||||||||||||||||||||
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Furniture and equipment expense |
1,650 | 1,576 | 1,573 | 1,484 | 1,502 | 4,799 | 4,664 | |||||||||||||||||||||
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Service fees |
3,033 | 2,858 | 2,789 | 2,648 | 2,728 | 8,680 | 7,687 | |||||||||||||||||||||
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Advertising and public relations |
1,122 | 922 | 873 | 923 | 939 | 2,917 | 3,148 | |||||||||||||||||||||
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Professional fees |
305 | 324 | 238 | 240 | 293 | 867 | 1,025 | |||||||||||||||||||||
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Amortization of intangibles |
834 | 841 | 846 | 433 | 433 | 2,521 | 1,483 | |||||||||||||||||||||
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FDIC premiums and assessments |
412 | 408 | 415 | 360 | 362 | 1,235 | 1,085 | |||||||||||||||||||||
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Merger expense |
- | - | 2,310 | 2,125 | 787 | 2,310 | 787 | |||||||||||||||||||||
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Other operating expense |
3,847 | 3,980 | 3,660 | 3,707 | 3,376 | 11,487 | 10,391 | |||||||||||||||||||||
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Total noninterest expense |
$ | 27,940 | $ | 27,565 | $ | 28,737 | $ | 27,624 | $ | 26,279 | $ | 84,242 | $ | 76,679 | ||||||||||||||
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(1) |
includes other operating income and expense items, such as the gain from the sale of Bearing Insurance. |
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RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited) |
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Three Months Ended |
Nine Months Ended |
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September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
September 30, |
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(Amounts in thousands, except per share data) |
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
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Adjusted Net Income |
$ | 15,423 | $ | 22,513 | $ | 12,027 | $ | 12,465 | $ | 12,266 | $ | 49,963 | $ | 36,329 | ||||||||||||||
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Non-GAAP adjustments: |
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(Gain) loss on sale of securities |
- | (210 | ) | 2 | - | - | (208 | ) | - | |||||||||||||||||||
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Merger expense |
- | - | 2,310 | 2,125 | 787 | 2,310 | 787 | |||||||||||||||||||||
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Gain on divestiture |
- | (10,384 | ) | - | - | - | (10,384 | ) | - | |||||||||||||||||||
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Other items (1) |
(902 | ) | (77 | ) | (216 | ) | - | - | (1,195 | ) | - | |||||||||||||||||
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Total adjustments |
(902 | ) | (10,671 | ) | 2,096 | 2,125 | 787 | (9,477 | ) | 787 | ||||||||||||||||||
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Tax effect |
(216 | ) | (2,543 | ) | 457 | 434 | 152 | (2,302 | ) | 152 | ||||||||||||||||||
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Adjusted earnings, non-GAAP |
$ | 14,737 | $ | 14,385 | $ | 13,666 | $ | 14,156 | $ | 12,901 | $ | 42,788 | $ | 36,964 | ||||||||||||||
|
Adjusted diluted earnings per common share, non-GAAP |
$ | 0.78 | $ | 0.76 | $ | 0.72 | $ | 0.77 | $ | 0.70 | $ | 2.25 | $ | 2.01 | ||||||||||||||
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Performance ratios, non-GAAP |
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Adjusted return on average assets |
1.62 | % | 1.59 | % | 1.58 | % | 1.74 | % | 1.60 | % | 1.60 | % | 1.54 | % | ||||||||||||||
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Adjusted return on average common equity |
10.73 | % | 10.80 | % | 10.56 | % | 10.94 | % | 10.08 | % | 10.70 | % | 9.81 | % | ||||||||||||||
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Adjusted return on average tangible common equity (2) |
15.32 | % | 15.58 | % | 15.30 | % | 15.67 | % | 14.53 | % | 15.40 | % | 14.21 | % | ||||||||||||||
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(1) |
Includes other non-recurring income and expense items, such as BOLI proceeds and the sale of bank property. |
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(2) |
A non-GAAP financial measure defined as adjusted earnings divided by average stockholders' equity less average goodwill and other intangible assets. |
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AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) |
|
Three Months Ended September 30, |
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2026 |
2025 |
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Average |
Average Yield/ |
Average |
Average Yield/ |
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(Amounts in thousands) |
Balance |
Interest (1) |
Rate (1) |
Balance |
Interest (1) |
Rate (1) |
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Assets |
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Earning assets |
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Loans(2)(3) |
$ | 2,459,077 | $ | 33,281 | 5.37 | % | $ | 2,339,631 | $ | 30,897 | 5.24 | % | ||||||||||||
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Securities available for sale |
243,418 | 2,180 | 3.55 | % | 130,187 | 1,070 | 3.26 | % | ||||||||||||||||
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Interest-bearing deposits |
501,771 | 4,913 | 3.88 | % | 343,541 | 3,845 | 4.44 | % | ||||||||||||||||
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Total earning assets |
3,204,266 | 40,374 | 5.00 | % | 2,813,359 | 35,812 | 5.05 | % | ||||||||||||||||
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Other assets |
409,121 | 377,244 | ||||||||||||||||||||||
|
Total assets |
$ | 3,613,387 | $ | 3,190,603 | ||||||||||||||||||||
|
Liabilities and stockholders' equity |
||||||||||||||||||||||||
|
Interest-bearing deposits |
||||||||||||||||||||||||
|
Demand deposits |
$ | 810,579 | $ | 292 | 0.14 | % | $ | 657,223 | $ | 196 | 0.12 | % | ||||||||||||
|
Savings deposits |
1,030,223 | 3,246 | 1.25 | % | 895,925 | 3,225 | 1.43 | % | ||||||||||||||||
|
Time deposits |
203,090 | 788 | 1.54 | % | 213,601 | 981 | 1.82 | % | ||||||||||||||||
|
Total interest-bearing deposits |
2,043,892 | 4,326 | 0.84 | % | 1,766,749 | 4,402 | 0.99 | % | ||||||||||||||||
|
Borrowings |
||||||||||||||||||||||||
|
Federal funds purchased |
- | - | - | - | - | - | ||||||||||||||||||
|
Retail repurchase agreements |
3,082 | 14 | 1.86 | % | 1,159 | - | 0.06 | % | ||||||||||||||||
|
Total borrowings |
3,082 | 14 | 1.86 | % | 1,159 | - | 0.06 | % | ||||||||||||||||
|
Total interest-bearing liabilities |
2,046,974 | 4,340 | 0.84 | % | 1,767,908 | 4,402 | 0.99 | % | ||||||||||||||||
|
Noninterest-bearing demand deposits |
965,545 | 868,489 | ||||||||||||||||||||||
|
Other liabilities |
55,925 | 46,321 | ||||||||||||||||||||||
|
Total liabilities |
3,068,444 | 2,682,718 | ||||||||||||||||||||||
|
Stockholders' equity |
544,943 | 507,885 | ||||||||||||||||||||||
|
Total liabilities and stockholders' equity |
$ | 3,613,387 | $ | 3,190,603 | ||||||||||||||||||||
|
Net interest income, FTE(1) |
$ | 36,034 | $ | 31,410 | ||||||||||||||||||||
|
Net interest rate spread |
4.16 | % | 4.06 | % | ||||||||||||||||||||
|
Net interest margin, FTE(1) |
4.46 | % | 4.43 | % | ||||||||||||||||||||
|
(1) |
Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%. |
||||||||||||
|
(2) |
Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual. |
||||||||||||
|
(3) |
Interest on loans includes non-cash and accelerated purchase accounting accretion of $156 thousand and $405 thousand for the three months ended September 30, 2026,and 2025, respectively. |
||||||||||||
|
AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited) |
|
Nine Months Ended September 30, |
||||||||||||||||||||||||
|
2026 |
2025 |
|||||||||||||||||||||||
|
Average |
Average Yield/ |
Average |
Average Yield/ |
|||||||||||||||||||||
|
(Amounts in thousands) |
Balance |
Interest(1) |
Rate(1) |
Balance |
Interest(1) |
Rate(1) |
||||||||||||||||||
|
Assets |
||||||||||||||||||||||||
|
Earning assets |
||||||||||||||||||||||||
|
Loans(2)(3) |
$ | 2,450,945 | $ | 97,931 | 5.34 | % | $ | 2,366,151 | $ | 92,385 | 5.22 | % | ||||||||||||
|
Securities available for sale |
248,350 | 6,521 | 3.51 | % | 135,900 | 3,384 | 3.33 | % | ||||||||||||||||
|
Interest-bearing deposits |
473,225 | 13,644 | 3.85 | % | 324,625 | 10,828 | 4.46 | % | ||||||||||||||||
|
Total earning assets |
3,172,520 | 118,096 | 4.98 | % | 2,826,676 | 106,597 | 5.04 | % | ||||||||||||||||
|
Other assets |
413,180 | 376,317 | ||||||||||||||||||||||
|
Total assets |
$ | 3,585,700 | $ | 3,202,993 | ||||||||||||||||||||
|
Liabilities and stockholders' equity |
||||||||||||||||||||||||
|
Interest-bearing deposits |
||||||||||||||||||||||||
|
Demand deposits |
$ | 808,799 | $ | 1,279 | 0.21 | % | $ | 657,916 | $ | 554 | 0.11 | % | ||||||||||||
|
Savings deposits |
1,018,583 | 9,602 | 1.26 | % | 894,049 | 9,857 | 1.47 | % | ||||||||||||||||
|
Time deposits |
210,513 | 2,644 | 1.68 | % | 226,690 | 3,593 | 2.12 | % | ||||||||||||||||
|
Total interest-bearing deposits |
2,037,895 | 13,525 | 0.89 | % | 1,778,655 | 14,004 | 1.05 | % | ||||||||||||||||
|
Borrowings |
||||||||||||||||||||||||
|
Federal funds purchased |
- | - | - | - | - | - | ||||||||||||||||||
|
Retail repurchase agreements |
2,882 | 36 | 1.69 | % | 1,174 | - | 0.06 | % | ||||||||||||||||
|
Total borrowings |
2,882 | 36 | 1.69 | % | 1,174 | - | 0.06 | % | ||||||||||||||||
|
Total interest-bearing liabilities |
2,040,777 | 13,561 | 0.89 | % | 1,779,829 | 14,004 | 1.05 | % | ||||||||||||||||
|
Noninterest-bearing demand deposits |
952,429 | 868,639 | ||||||||||||||||||||||
|
Other liabilities |
57,653 | 50,547 | ||||||||||||||||||||||
|
Total liabilities |
3,050,859 | 2,699,015 | ||||||||||||||||||||||
|
Stockholders' equity |
534,841 | 503,978 | ||||||||||||||||||||||
|
Total liabilities and stockholders' equity |
$ | 3,585,700 | $ | 3,202,993 | ||||||||||||||||||||
|
Net interest income, FTE(1) |
$ | 104,535 | $ | 92,593 | ||||||||||||||||||||
|
Net interest rate spread |
4.09 | % | 3.99 | % | ||||||||||||||||||||
|
Net interest margin, FTE(1) |
4.41 | % | 4.38 | % | ||||||||||||||||||||
|
(1) |
Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%. |
||||||||||||
|
(2) |
Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual. |
||||||||||||
|
(3) |
Interest on loans includes non-cash and accelerated purchase accounting accretion of $1.02 million and $1.39 million for the nine months ended September 30, 2026, and 2025, respectively. |
||||||||||||
|
CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited) |
|
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||
|
(Amounts in thousands, except per share data) |
2026 |
2026 |
2026 |
2025 |
2025 |
|||||||||||||||
|
Assets |
||||||||||||||||||||
|
Cash and cash equivalents |
$ | 502,348 | $ | 591,913 | $ | 600,299 | $ | 512,240 | $ | 427,705 | ||||||||||
|
Debt securities available for sale, at fair value |
335,316 | 239,050 | 267,522 | 132,688 | 131,314 | |||||||||||||||
|
Loans held for investment, net of unearned income |
2,477,419 | 2,459,746 | 2,456,029 | 2,314,755 | 2,331,305 | |||||||||||||||
|
Allowance for credit losses |
(32,638 | ) | (32,654 | ) | (33,543 | ) | (30,761 | ) | (31,597 | ) | ||||||||||
|
Loans held for investment, net |
2,444,781 | 2,427,092 | 2,422,486 | 2,283,994 | 2,299,708 | |||||||||||||||
|
Premises and equipment, net |
50,132 | 50,161 | 50,204 | 47,560 | 47,522 | |||||||||||||||
|
Other real estate owned |
66 | 52 | - | - | 264 | |||||||||||||||
|
Interest receivable |
9,740 | 9,344 | 9,856 | 8,720 | 9,121 | |||||||||||||||
|
Goodwill |
145,672 | 145,672 | 145,672 | 143,946 | 143,946 | |||||||||||||||
|
Other intangible assets |
17,167 | 18,001 | 18,841 | 11,098 | 11,531 | |||||||||||||||
|
Other assets |
128,457 | 126,435 | 130,067 | 119,397 | 118,502 | |||||||||||||||
|
Total assets |
$ | 3,633,679 | $ | 3,607,720 | $ | 3,644,947 | $ | 3,259,643 | $ | 3,189,613 | ||||||||||
|
Liabilities |
||||||||||||||||||||
|
Deposits |
||||||||||||||||||||
|
Noninterest-bearing |
$ | 974,259 | $ | 973,218 | $ | 959,555 | $ | 896,255 | $ | 865,554 | ||||||||||
|
Interest-bearing |
2,054,625 | 2,043,373 | 2,104,832 | 1,789,074 | 1,765,039 | |||||||||||||||
|
Total deposits |
3,028,884 | 3,016,591 | 3,064,387 | 2,685,329 | 2,630,593 | |||||||||||||||
|
Securities sold under agreements to repurchase |
2,440 | 2,924 | 3,181 | 1,214 | 1,429 | |||||||||||||||
|
Interest, taxes, and other liabilities |
57,085 | 49,105 | 55,985 | 72,553 | 46,866 | |||||||||||||||
|
Total liabilities |
3,088,409 | 3,068,620 | 3,123,553 | 2,759,096 | 2,678,888 | |||||||||||||||
|
Stockholders' equity |
||||||||||||||||||||
|
Common stock |
18,916 | 18,903 | 18,861 | 18,335 | 18,315 | |||||||||||||||
|
Additional paid-in capital |
186,827 | 186,291 | 184,684 | 170,358 | 169,569 | |||||||||||||||
|
Retained earnings |
351,285 | 342,103 | 325,439 | 319,368 | 330,895 | |||||||||||||||
|
Accumulated other comprehensive loss |
(11,758 | ) | (8,197 | ) | (7,590 | ) | (7,514 | ) | (8,054 | ) | ||||||||||
|
Total stockholders' equity |
545,270 | 539,100 | 521,394 | 500,547 | 510,725 | |||||||||||||||
|
Total liabilities and stockholders' equity |
$ | 3,633,679 | $ | 3,607,720 | $ | 3,644,947 | $ | 3,259,643 | $ | 3,189,613 | ||||||||||
|
Shares outstanding at period-end |
18,916,116 | 18,902,628 | 18,861,295 | 18,334,787 | 18,314,905 | |||||||||||||||
|
Book value per common share |
$ | 28.83 | $ | 28.52 | $ | 27.64 | $ | 27.30 | $ | 27.89 | ||||||||||
|
Tangible book value per common share(1) |
20.22 | 19.86 | 18.92 | 18.84 | 19.40 | |||||||||||||||
|
(1) |
A non-GAAP financial measure defined as stockholders' equity less goodwill and other intangible assets, divided by shares outstanding. |
||||||||||||||
|
SELECTED CREDIT QUALITY INFORMATION (Unaudited) |
|
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||
|
(Amounts in thousands) |
2026 |
2026 |
2026 |
2025 |
2025 |
|||||||||||||||
|
Allowance for Credit Losses |
||||||||||||||||||||
|
Balance at beginning of period: |
||||||||||||||||||||
|
Allowance for credit losses - loans |
$ | 32,654 | $ | 33,543 | $ | 30,761 | $ | 31,597 | $ | 33,020 | ||||||||||
|
Allowance for credit losses - loan commitments |
505 | 433 | 355 | 319 | 319 | |||||||||||||||
|
Total allowance for credit losses beginning of period |
33,159 | 33,976 | 31,116 | 31,916 | 33,339 | |||||||||||||||
|
Adjustments to beginning balance: |
||||||||||||||||||||
|
Allowance for credit losses - loans - Hometown acquisition |
- | - | 3,213 | - | - | |||||||||||||||
|
Net Adjustments |
- | - | 3,213 | - | - | |||||||||||||||
|
Provision for credit losses: |
||||||||||||||||||||
|
Provision for credit losses - loans |
680 | 411 | 300 | - | - | |||||||||||||||
|
Provision for credit losses - loan commitments |
- | 72 | 78 | 36 | - | |||||||||||||||
|
Total provision for credit losses - loans and loan commitments |
680 | 483 | 378 | 36 | - | |||||||||||||||
|
Charge-offs |
(1,254 | ) | (1,804 | ) | (1,379 | ) | (1,527 | ) | (2,015 | ) | ||||||||||
|
Recoveries |
558 | 504 | 648 | 691 | 592 | |||||||||||||||
|
Net charge-offs |
(696 | ) | (1,300 | ) | (731 | ) | (836 | ) | (1,423 | ) | ||||||||||
|
Balance at end of period: |
||||||||||||||||||||
|
Allowance for credit losses - loans |
32,638 | 32,654 | 33,543 | 30,761 | 31,597 | |||||||||||||||
|
Allowance for credit losses - loan commitments |
505 | 505 | 433 | 355 | 319 | |||||||||||||||
|
Ending balance |
$ | 33,143 | $ | 33,159 | $ | 33,976 | $ | 31,116 | $ | 31,916 | ||||||||||
|
Nonperforming Assets |
||||||||||||||||||||
|
Nonaccrual loans |
$ | 15,763 | $ | 16,816 | $ | 17,672 | $ | 13,941 | $ | 16,514 | ||||||||||
|
Accruing loans past due 90 days or more |
45 | 280 | 30 | 212 | 125 | |||||||||||||||
|
Total nonperforming loans |
15,808 | 17,096 | 17,702 | 14,153 | 16,639 | |||||||||||||||
|
OREO |
66 | 52 | - | - | 264 | |||||||||||||||
|
Total nonperforming assets |
$ | 15,874 | $ | 17,148 | $ | 17,702 | $ | 14,153 | $ | 16,903 | ||||||||||
|
Additional Information |
||||||||||||||||||||
|
Total modified loans |
$ | 3,418 | $ | 3,435 | $ | 2,736 | $ | 2,442 | $ | 2,291 | ||||||||||
|
Asset Quality Ratios |
||||||||||||||||||||
|
Nonperforming loans to total loans |
0.64 | % | 0.70 | % | 0.72 | % | 0.61 | % | 0.71 | % | ||||||||||
|
Nonperforming assets to total assets |
0.44 | % | 0.48 | % | 0.49 | % | 0.43 | % | 0.53 | % | ||||||||||
|
Allowance for credit losses to nonperforming loans |
206.47 | % | 191.00 | % | 189.49 | % | 217.35 | % | 189.90 | % | ||||||||||
|
Allowance for credit losses to total loans |
1.32 | % | 1.33 | % | 1.37 | % | 1.33 | % | 1.36 | % | ||||||||||
|
Annualized net charge-offs to average loans |
0.11 | % | 0.21 | % | 0.12 | % | 0.14 | % | 0.24 | % | ||||||||||